Europe Summary and Highlights 7 Aug
Waiting for Iran news and key US payrolls release
Silver the main mover, breaking out and up almost 5%
Europe
Flat trade this morning in consolidation, reinforced by the wait for not only Iran news but the key US payrolls release shortly. Consensus for that is around 80k on the headline and unchanged on the unemployment rate.
Oil just the firm side of flat, slightly off earlier highs, equities a little firmer. Nasdaq + ½ %, USTs broadly flat after yesterday’s yield bounce.
Main interest actually still in precious metals where we have been suggesting scope for an upside break out of recent basing. Silver in particular looks to be achieving that, if sustained, with a 4.7% gain today that clears through and away from 64~.
German June industrial output 0.2%m/m (mkt 0.1%), flat yr/yr. UK Lloyds house prices 0.1%y/y from 0.6% (mkt 0.4%).
Asia Session
The Japan June Household spending continues to fall by 3.3% y/y, a long consecutive fall and a scene not favorable by the BoJ. While real wage has been positive for most of 2026, consumers do not seem to be entertained to increase their spending at high price. If such persist, the BoJ may have a hard time justifying their future rate hikes. USD/JPY is trading 0.06% lower at 158.31. Short end JGB yields are refreshing highs.
The broader risk sentiment is indecisive as no one want to take any risky bets before the weekend on geopolitical tension. Major equity indexes are performing individually after Saudi's report of potential disruption in the region. AUD/USD is trading 0.0% lower at 0.7028. NZD/USD is trading 0.09% lower while USD/CAD rises 0.06% on slightly lower oil. Else, EUR/USD and GBP/USD are down 0.01%.